An unusual clause in Marine Insurance Policy

TinaT · Post by **TinaT** » Wed Sep 20, 2006 1:00 am

Good evening to everyone,
I would like know your opinions about a marine insurance policy bearing a clause such as "declaration against open policy no.ABC1234".
Why is this clause appears in the policy? Is this acceptable? If it is unacceptable, please provide reasons.Thanks.

RolandLeupi · Post by **RolandLeupi** » Thu Sep 21, 2006 1:00 am

I would ask the insurance company what it means. However, if otherwise the document is compliant with credit terms and conditions I would not reject such a document.
Roland

KhalidI · Post by **KhalidI** » Thu Sep 21, 2006 1:00 am

This is not unusual under the open policy the insurer usually knows only of the shipments made by the exporter after the receipt of the insurance declaration form and/or the copy of the insurance certificates.
Regards
Khalid

KimChristensen · Post by **KimChristensen** » Fri Sep 22, 2006 1:00 am

Dear Tina,

I would surely like to see the whole policy here – and I assume that the LC calls for an “insurance policy” (??)

I think that Khalid is absolutely right – but this would to me indicate that this is in fact an insurance certificate/declaration – which would not be okay if my initial assumption is correct.

Based on the question alone I think it is okay – but I think you would need the document requirement from the LC and the whole document in order to give a full and precise answer.

I would probably also ask the insurance company – but it goes without saying that this is not an optimal solution – as you are to base your acceptance/refusal on the documents alone.

Best regards
Kim